Can cash crash.

Hi all I've been away for a bit, and there is a lot of hurt out there.( Still been reading all the treads on SS). Metal's, stock markets, crashing. People losing their jobs, real-estate flat lining even with super low interest rates, companies down-sizing ,cost of living going through the roof . Is it me or are we in for GFC II ? Seems right now cash is KING ,but can cash crash? Will there be signs to look out for?

 

Everything costing more.

 

yes it's called inflation

 

Inflation is normal wear and tear on cash, it just gets less valuable as it gets older.
Hyperinflation would be a crash.

 

GFC 11? I don't think we actually left GFC1.
This is just another chapter of the same book.

 

Life support since GFC v 1.0.

 

It is funny how the lack of punctuation can change the context and meaning of language

When I first looked at the title ,I thought it was about aluminium can prices crashing

At the risk of being called a spelling plod ...please ,oh please put a question mark at the end of the title ! Having said that ,I appreciate the alliteration ,all the same

Gracious..

 

Your question - Can cash crash.

Here's an official chart mate from The Reserve Bank Of Australia.

It shows how the AUD has crashed before.



http://www.rba.gov.au/chart-pack/exchange-rates.html

And

Against the USD

 

Can cash crash?...

 

Losing half it's value every 20 years (at best) is already a slow motion crash.

 

cash can't crash

 

Zombabwie dollars

 

Of course it can. Read about inflation, hyperinflation and currency debasement. Check historical data, stories about previous currency devaluation events.

Also read about fiat money. Get well documented.

Yes, currency can crash. It's more prone to crash than PMs. Fiat currencies have no intrinsic value and are prone to devaluation. There have been so terrible hyperinflations in history. People lost almost all they had. Precious metals were highly valued/appreciated during those times.

Weimar Germany, post WW II Hungary, recently Zimbabwe and about a decade ago Argentina (1992-2002 economic crisis) were some of the best examples for this kind of hyperinflation scenario.

It's highly likely that first the euro, then the US dollar will crash. You don't want to hold all your wealth in currencies.

Look at PMS' post higher on this page. That Zimbabwean dollar depiction illustrates what can happen to your wealth if you hold it in paper currency!

But: holding dollars now is great. The US currency is gaining strength, mainly because the euro and Japanese yen are being inflated.
The US economy is also slightly improving.

So, US dollars now are a good asset. For now...

 

Since the inception of the RBA, the Australian dollar has lost over 90% of its purchasing power.

Similarly, since the inception of the Federal Reserve - the US dollar has lost 99% of its purchasing power.

:lol:

 

:lol: :lol: :lol: Same here!

 

Me too. I thought it was going to be a rant about how it was no longer worth taking drink cans to the recyclers.